Principles of Marketing Exam 2 Terms – Flashcards
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Market Segmentation
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Dividing a market into smaller groups with distinct needs, characterisitics, or behavior that might require seperate marketing strategies or mixes.
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Market Targeting
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The process of evaluating each market segment's attractiveness and selecting one or more segments to enter.
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Differentiation
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Actually differentiating the market offering to create superior customer to create superior customer value.
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Positioning
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Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing porducts in the minds of the targert consumer.
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Geographic Segmentation
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Deviding a market into different geographical units such as nations, states, regions, counties. cities or neighborhoods.
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Demographic Segmentation
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Deviding the market into groups based on variables such as age, gender, family size, family life cycles, income, occupation, education, religion, race, generation, and nationality.
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Age and Life Cycle Segmentation
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Dividing a market into different age and life-cycle groups.
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Gender Segmentation
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Dividing a market into different groups based on gender.
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Income Segmentation
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Dividing a market into different income groups.
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Psychographic Segmentation
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Dividing a market into different groups based on social class, lifestyle, or personality characteristics.
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Occasion Segmentation
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Dividing the market into groups according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item.
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Benefit Segmentation
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Dividing the market into groups according to the different benefits that consumer seek from the product.
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Intermarket Segmentation
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Forming segments of consumers who have similar needs and buying behavior even though they are located in different countries.
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Target Market
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A set of buyers sharing common needs or characteristics that they company decides to serve.
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Undifferentiated Marketing
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A market-coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer.
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Differentiated Marketing
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A market-coverage strategy in which a firm decides to target several market segments and designs seperate offers for each.
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Concentrated Marketing
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A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches.
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Micromarketing
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The practice of tailoring products and marketing programs to the needs and wants of specific individuals and local customer groups - includes local marketing and inividual marketing.
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Local Marketing
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Tailoring brand and promotions to the needs and wants of local customer groups - cities, neighborhoods and even specific stories.
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Individual Marketing
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Tailoring products and marketing programs to needs and preferences of individual customers - also labeled "one-to-one marketing", "Customized marketing" and "markets-of-one marketing".
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Product Position
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The way the product is defined by consumers on important attributes - the place the product occupies in consumers' minds relative to competing products.
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Competative Advantage
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An Advantage over competitors gained by offering greater customer value, either through lower prices or by providing more benefits that justify higher prices.
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Positioning Statement
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A statement that summarizes company or brand positioning.
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Product
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Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.
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Service
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Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
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Consumer Product
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A product bought by final consumer for personal consumption.
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Convenience Product
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A consumer product that customers usually buy frequently, immidiately, and with a minimum of comparison and buying effort.
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Shopping Product
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A consumer product that the customer, in the process of selection and purchases, usually compares on such a bases as suitability, style, quality and price.
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Specialty Product
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A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.
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Unsought Product
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A consumer product that the customer either does not know about or knows about but does not normally think of buying.
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Industrial Product
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A product bought by individuals and organizations for further processing or for use in conducting a business.
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Social Marketing
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The use of commercial marketing concepts and tools in programs designed to influence individuals behavior to improve their well being and that of society.
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Product Quality
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The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs.
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Brand
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A name, term, sign, symbol, design or a combination of these that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors.
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Packaging
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The activities of designing and producing the container or wrapper for a product.
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Product Line
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A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
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Product Mix
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The set of all product lines and items that a particular seller offers for sale.
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Store Brand
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A brand created and owned by a reseller of a product or service.
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Co Branding
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The practice of using the established brand names of two different companies on the same product.
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Brand Extension
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Extending an existing brand name to new product categories.
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Service Intangibility
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A major characteristic of services - they connot be seen, tasted, felt, heard, or smelled before they are bought.
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Service Inseparability
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A major characteristic of services - they are produced and consumed at the same time and cannot be seperated from their providers.
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Service Variability
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A major characteristic of services - their quailty may vary greatly, depending who provides them and when where and how.
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Service Profit Chain
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The chain that links service firm profits with employee and customer satisfaction.
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Internal Marketing
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Orienting and motivating customer contact employees and supporting service people to work as a team to provide customer satisfaction.
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Interactive Marketing
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Training service employees in the fine art of interacting with customers to satisfy thier needs.
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New Product Development
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The development of original products, product improvements. product modifications, and new brands through the firm's own product-development efforts.
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Idea Generation
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The systematic search for new-product ideas.
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Idea Screening
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Screening new-product ideas in order to spot good ideas and drop poor ones as soon as possible.
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Product Concept
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A detailed version of the new-product idea stated in meaningful consumer terms.
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Concept Testing
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Testing new-product concepts with a group of target consumers to find out if the concepts have strong consumer appeal.
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Marketing Strategy Development
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Designing an initial marketing strategy for a new product based on the product concept.
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Business Analysis
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A review of the sales, costs, and profit projections for a new product to find out whether these factors satisfy the company's objectives.
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Product Development
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Developing the product concept into a physical product in order to ensure that the product idea can be turned intro a workable market offering.
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Test Marketing
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The stage of new-product development in which the product and marketing program are tested in realistic market settings.
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Commercialization
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Introducing a new product into the market.
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Customer Centered New Product Development
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New-product development that focuses in finding new ways to solve customer problems and create more customer-satisfying experiences.
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Team Based New Product Development
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An approach to developing new products in which various company departments work closely together, overlapping the steps in the process to save time and increase effectiveness.
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Product Life Cycle
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The course of a product's sales and profits over its lifetime. It involves five distinct stages: Product Development, Introduction, Growth, Maturity, and Decline.
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Style
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A basic and distinctive mode of expression.
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Fashion
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A currently accepted or popular style in a given field.
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Fad
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A temporary period of unusually high sales driven by consumer enthusiasm and immediate product or brand popularity.
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Introduction Stage
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The product life cycle stage in which the new product is first distributed and made available for purchase.
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Growth Stage
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The product life cycle stage in which a product's sales start climbing quickly.
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Maturity Stage
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The product life cycle stage in which sales growth slows or levels off.
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Decline Stage
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The product life cycle stage in which a product's sales decline.
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Price
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The amount of money charged for a product or service, or the sum of the values that customers exchange for the benefit of having or using the product or service.
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Value Based Pricing
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Setting price based on buyer's perceptions of value rather than one the seller's cost.
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Good Value Pricing
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Offering just the right combination of quality and good service at a fair price.
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Value Added Pricing
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Attaching value added features and services to differentiate a company's offers and charging higher prices.
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Cost Based Pricing
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Setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk.
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Fixed Costs
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Costs that do not vary with production or sales level.
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Variable Costs
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Costs that vary directly with the level of production.
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Total Costs
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The sum of the fixed and variable costs for any given level of production.
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Experience Curve
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The drop in the average per unit production cost that comes with accumulated production.
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Cost Plus Pricing
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Adding a standard mark up to the cost of the product.
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Break Even Pricing
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Setting price to break even on the costs of making and marketing a product or setting price to make a target profit.
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Demand Curve
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A curve that shows the number of units the market will buy in a given time period, at different prices that might be charged.
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Price Elasticity
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A measure of the sensitivity of demand to changes in price.
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Market Skimming Pricing
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Setting a high price for a new product to skim maximum revenues layer by layer from segment willing to pay the high price; company makes fewer but more profitable sales.
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Market Penetration Pricing
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Setting a low price for a new product in order to attract a large number of buyers and a large market share.
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Product Line Pricing
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Setting the price steps between various products in a product line based on cost differences between the products, customer different evaluations of features and competitors prices.
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Optional Product Pricing
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The pricing of optional or accessory products along with a main product.
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Captive Product Pricing
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Setting a price for products that must be used along with a main product, such as blades for a razor and film for a camera.
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By Product Pricing
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Setting a price for by-products in order to make the main product's price more competitive.
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Product Bundle Pricing
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Combining several products and offering the bundle at a reduced price.
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Discount
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A straight reduction in price on purchases during a stated period of time.
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Allowance
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Promotional money paid by manufacturers to retailers in return for an agreement to feature the manufacturer's products in some way.
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Segmented Pricing
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Selling a product or service at two or more selling prices, where the difference in prices is not based on differences in costs.
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Psychological Pricing
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A pricing approach that considers the psychology of prices and not simply the economics.
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Reference Prices
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Prices that buyers carry in their minds and refer to when they look at a given product.
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Promotional Pricing
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Temporarily pricing products below the list price, and sometimes even below cost, to increase short-run sales.
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Geographical Pricing
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Setting prices for customers located in different parts of the world.
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FOB Origin Pricing
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A geographical pricing strategy in which goods are placed free on board a carrier; customer pays the freight from the factory to the destination.
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Uniform Delivered Pricing
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A geographical pricing strategy in which the company charges the same price plus freight to all customers, regardless of their location.
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Zone Pricing
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A geographical pricing strategy in which the company sets up two or more zones. All customers within a zone pay the same total price; the more distant the zone the higher the price.
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Basing Point Pricing
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A geographical pricing strategy in which the seller designates some city as a basing point and charges all customers the freight cost from that city to the customer.
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Freight Absorption Pricing
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A geographical pricing strategy in which the seller absorbs all or part of the freight charges in order to get the desired business.
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Dynamic Pricing
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Adjusting prices continually to meet the characteristics and needs of individual customers and situations.
